Providence Group Realty Newswirehttp://blog.providencegrouprealty.com
Up-to-the-minute news stories, real estate market updates, and other information.Tue, 26 Sep 2017 10:00:00 +0000en-UShourly1https://wordpress.org/?v=4.874128549More Than Half of All Buyers Are Surprised by Closing Costshttp://blog.providencegrouprealty.com/2017/09/26/more-than-half-of-all-buyers-are-surprised-by-closing-costs/
http://blog.providencegrouprealty.com/2017/09/26/more-than-half-of-all-buyers-are-surprised-by-closing-costs/#respondTue, 26 Sep 2017 10:00:00 +0000http://blog.providencegrouprealty.com/2017/09/26/more-than-half-of-all-buyers-are-surprised-by-closing-costs/According to a survey conducted by ClosingCorp, over half of all homebuyers are surprised by the closing costs required to obtain their mortgage. After surveying 1,000 first-time and repeat homebuyers, the results revealed that 17% of homebuyers were surprised that closing costs were required at all, while another 35% were stunned by how much higher the fees […]]]>

According to a survey conducted by ClosingCorp, over half of all homebuyers are surprised by the closing costs required to obtain their mortgage.

After surveying 1,000 first-time and repeat homebuyers, the results revealed that 17% of homebuyers were surprised that closing costs were required at all, while another 35% were stunned by how much higher the fees were than expected.

“Homebuyers reported being most surprised by mortgage insurance, followed by bank fees and points, taxes, title insurance and appraisal fees.”

Bankrate.comgathered closing cost data from lenders in every state and Washington, D.C. in order to share the average costs in each state. The map below was created using the closing costs on a $200,000 mortgage with a 20% down payment.

Keep in mind that if you are in the market for a home above this price range, your costs could be significantly greater. According to Freddie Mac,

“Closing costs are typically between 2 and 5% of your purchase price.”

Bottom Line

Speak with your lender and agent early and often to determine how much you’ll be responsible for at closing. Finding out that you’ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to.

]]>http://blog.providencegrouprealty.com/2017/09/26/more-than-half-of-all-buyers-are-surprised-by-closing-costs/feed/01322How to Get the Most Money from the Sale of Your Homehttp://blog.providencegrouprealty.com/2017/09/25/how-to-get-the-most-money-from-the-sale-of-your-home/
http://blog.providencegrouprealty.com/2017/09/25/how-to-get-the-most-money-from-the-sale-of-your-home/#respondMon, 25 Sep 2017 10:00:00 +0000http://blog.providencegrouprealty.com/2017/09/25/how-to-get-the-most-money-from-the-sale-of-your-home/Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensure that you get the highest price possible. 1. Price it a LITTLE LOW This may seem counterintuitive. However, let’s look at […]]]>

Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensure that you get the highest price possible.

1. Price it a LITTLE LOW

This may seem counterintuitive. However, let’s look at this concept for a moment. Many homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below).

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price, but will instead have multiple buyers fighting with each other over the house.

Realtor.com gives this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

2. Use a Real Estate Professional

This, too, may seem counterintuitive. The seller may think they would make more money if they didn’t have to pay a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by a real estate professional.

A new study by Collateral Analytics, reveals that FSBOs don’t actually save any money, and in some cases may be costing themselves more, by not listing with an agent.

In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. The data showed that:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.”

The results of the study showed that the differential in selling prices for FSBOs when compared to MLS sales of similar properties is about 5.5%. Sales in 2017 suggest the average price was near 6% lower for FSBO sales of similar properties.

Bottom Line

Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the price you get for your house.

]]>http://blog.providencegrouprealty.com/2017/09/25/how-to-get-the-most-money-from-the-sale-of-your-home/feed/01321Lack of Existing Home Inventory Slows Sales Heading into Fall [INFOGRAPHIC]http://blog.providencegrouprealty.com/2017/09/22/lack-of-existing-home-inventory-slows-sales-heading-into-fall-infographic/
http://blog.providencegrouprealty.com/2017/09/22/lack-of-existing-home-inventory-slows-sales-heading-into-fall-infographic/#respondFri, 22 Sep 2017 10:00:00 +0000http://blog.providencegrouprealty.com/2017/09/22/lack-of-existing-home-inventory-slows-sales-heading-into-fall-infographic/Some Highlights: The National Association of Realtors (NAR) recently released their latest Existing Home Sales Report. First-time homebuyers made up 31% of all sales in August. Homes are selling quickly with 51% of homes on the market for less than a month. A limited supply continues to drive up prices for the 66th consecutive month.]]>

Some Highlights:

Homes are selling quickly with 51% of homes on the market for less than a month.

A limited supply continues to drive up prices for the 66th consecutive month.

]]>http://blog.providencegrouprealty.com/2017/09/22/lack-of-existing-home-inventory-slows-sales-heading-into-fall-infographic/feed/01320Why Are So Few Homes for Sale?http://blog.providencegrouprealty.com/2017/09/21/why-are-so-few-homes-for-sale/
http://blog.providencegrouprealty.com/2017/09/21/why-are-so-few-homes-for-sale/#respondThu, 21 Sep 2017 10:00:00 +0000http://blog.providencegrouprealty.com/2017/09/21/why-are-so-few-homes-for-sale/There is no doubt that the largest challenge in today’s housing market is a lack of housing inventory for sale. This challenge has been defined as an “overwhelming lack of supply,” and even a “straight up inventory crisis.” First American just released the results of a survey which sheds light on the reasons for the […]]]>

There is no doubt that the largest challenge in today’s housing market is a lack of housing inventory for sale. This challenge has been defined as an “overwhelming lack of supply,” and even a “straight up inventory crisis.”

First American just released the results of a survey which sheds light on the reasons for the current lack of supply.

The survey asked title agents and real estate professionals to identify what they believe are the top reasons for this lack of inventory in their markets. Here are the results of the survey:

47% – existing homeowners are worried that they will not be able to find a home to buy

5% – first-time buyer demand is absorbing a large share of available homes

3% – existing homeowners’ mortgage rates are lower than the current rates

6% – insufficient or negative equity in the home

6% – foreign buyer demand is absorbing a large share of available homes

As the survey revealed, there is a shortage of current homeowners willing to put their homes on the market for one of three reasons (see numbers 1, 3 and 4 above).

Is this an opportunity for some homeowners?

The report on the survey explains:

“The crowd has spoken, and it seems in many markets home buyers and sellers alike are ‘imprisoned’ by the lack of housing inventory.”

That leaves a tremendous opportunity for every homeowner not facing these concerns. If you can put your home on the market today, you are subject to far less competition than at any time in recent history. That will result in your home selling quickly and for the highest possible price.

Bottom Line

While many homeowners are feeling imprisoned for multiple reasons, those who are not handcuffed by these concerns have a once in a lifetime opportunity to sell their houses at a peak selling time.

]]>http://blog.providencegrouprealty.com/2017/09/21/why-are-so-few-homes-for-sale/feed/01319More Americans Say Now is a Good Time to Sell!http://blog.providencegrouprealty.com/2017/09/20/more-americans-say-now-is-a-good-time-to-sell/
http://blog.providencegrouprealty.com/2017/09/20/more-americans-say-now-is-a-good-time-to-sell/#respondWed, 20 Sep 2017 10:00:00 +0000http://blog.providencegrouprealty.com/2017/09/20/more-americans-say-now-is-a-good-time-to-sell/Recently released data from Fannie Mae’s National Housing Survey revealed that rising home prices were the catalyst behind an eight-point jump in the net percentage of respondents who say now is a good time to sell. The index is now 21 points higher than it was this time last year. Overall, 62% of Americans surveyed […]]]>

Recently released data from Fannie Mae’s National Housing Survey revealed that rising home prices were the catalyst behind an eight-point jump in the net percentage of respondents who say now is a good time to sell. The index is now 21 points higher than it was this time last year.

Overall, 62% of Americans surveyed said that now is a good time to sell (up from 58%), while 26% of respondents said that now is not a good time to sell (down from 30%). The net score is the difference between the two percentages, or 36%.

According to CoreLogic, home prices are now up 6.7% over last year and 78.8% of homeowners with a mortgage in the US now have significant equity (defined as 20% or more).

As home prices have increased, more and more homeowners have realized that now is a good time to sell their homes in order to take advantage of the extra equity they now have.

At the same time, however, rising prices have had the exact opposite impact on the good-time-to-buy scale as many buyers are nervous that they will not be able to afford a home; the net score dropped 5 points to 18%.

Doug Duncan, Vice President & Chief Economist atFannie Mae, had this to say,

“In the early stages of the economic expansion, home selling sentiment trailed home buying sentiment by a significant margin. The reverse is true today.

The net good time to sell share is now double the net good time to buy share, with record high percentages of consumers citing home prices as the primary reason for both perceptions.Such a sizable gap between selling and buying sentiment, if it persists, could weigh on the housing market through the rest of the year.”

Buyer demand continues to outpace the supply of homes for sale, which has driven prices up across the country. Until the supply starts to better match demand, there will be a gap between the sentiments surrounding buying and selling.

Bottom Line

If you are considering listing your home for sale this year, now is the time!

]]>http://blog.providencegrouprealty.com/2017/09/20/more-americans-say-now-is-a-good-time-to-sell/feed/01318Home Sales Expected to Increase Nicely in 2018http://blog.providencegrouprealty.com/2017/09/19/home-sales-expected-to-increase-nicely-in-2018/
http://blog.providencegrouprealty.com/2017/09/19/home-sales-expected-to-increase-nicely-in-2018/#respondTue, 19 Sep 2017 10:00:00 +0000http://blog.providencegrouprealty.com/2017/09/19/home-sales-expected-to-increase-nicely-in-2018/Freddie Mac, Fannie Mae, and The Mortgage Bankers Association are all projecting that home sales will increase in 2018. Here is a chart showing what each entity is projecting in sales for the remainder of this year and the next. As we can see, each entity is projecting sizable increases in home sales next year. If you […]]]>

Freddie Mac, Fannie Mae, andThe Mortgage Bankers Association are all projecting that home sales will increase in 2018. Here is a chart showing what each entity is projecting in sales for the remainder of this year and the next.

As we can see, each entity is projecting sizable increases in home sales next year. If you have considered selling your house recently, now may be the time to put it on the market.

]]>http://blog.providencegrouprealty.com/2017/09/19/home-sales-expected-to-increase-nicely-in-2018/feed/013175 Reasons to Sell This Fallhttp://blog.providencegrouprealty.com/2017/09/18/5-reasons-to-sell-this-fall-2/
http://blog.providencegrouprealty.com/2017/09/18/5-reasons-to-sell-this-fall-2/#respondMon, 18 Sep 2017 10:00:00 +0000http://blog.providencegrouprealty.com/2017/09/18/5-reasons-to-sell-this-fall-2/Here are five reasons listing your home for sale this fall makes sense. 1. Demand Is Strong The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing, and able to purchase… and are in the market right […]]]>

Here are five reasons listing your home for sale this fall makes sense.

1. Demand Is Strong

The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing, and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other to buy a home.

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

Housing inventory is still under the 6-month supply that is needed for a normal housing market.

This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values have increased. However, additional inventory could be coming to the market soon.

Historically, the average number of years a homeowner stayed in their home was six, but that number has jumped to an average of almost nine years since 2008. There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move.

The choices buyers have will continue to increase. Don’t wait until this other inventory comes to market before you decide to sell.

3. The Process Will Be Quicker

Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and much simpler as buyers know exactly what they can afford before home shopping. According to Ellie Mae’s latest Origination Insights Report, the time to close a loan has dropped to 43 days, after seeing a 12-month high of 48 days in January.

4. There Will Never Be a Better Time to Move Up

If your next move will be into a premium or luxury home, now is the time to move-up! The inventory of homes for sale at these higher price ranges has forced these markets into a buyer’s market. This means that if you are planning on selling a starter or trade-up home, your home will sell quickly AND you’ll be able to find a premium home to call your own!

Prices are projected to appreciate by 5.0% over the next year according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

5. It’s Time to Move on With Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

]]>http://blog.providencegrouprealty.com/2017/09/18/5-reasons-to-sell-this-fall-2/feed/01316How Buyers and Sellers Have Lost Thousands of Dollars to Email Scamshttp://blog.providencegrouprealty.com/2017/09/15/how-buyers-and-sellers-have-lost-thousands-of-dollars-to-email-scams/
http://blog.providencegrouprealty.com/2017/09/15/how-buyers-and-sellers-have-lost-thousands-of-dollars-to-email-scams/#respondFri, 15 Sep 2017 12:00:00 +0000http://blog.providencegrouprealty.com/2017/09/15/how-buyers-and-sellers-have-lost-thousands-of-dollars-to-email-scams/Email scams are as old as, well, email, but as the years go by, these scams have become more and more sophisticated. Recently, several home buyers have fallen victim to specially targeted email scams that attempt to rob them of their closing costs — sometimes up to hundreds of thousands of dollars. These types of […]]]>Email scams are as old as, well, email, but as the years go by, these scams have become more and more sophisticated. Recently, several home buyers have fallen victim to specially targeted email scams that attempt to rob them of their closing costs — sometimes up to hundreds of thousands of dollars.

These types of scams are devastating both financially and emotionally, especially when your home is involved. But to help protect you from email scams targeting the real estate industry, we have outlined a few tips about what these scams are and how to avoid them.

What Email Scams Are Common?

Though the method through which hackers collect personal or financial information is always changing, there are a few basic types of scams that buyers and sellers should be aware of.

Phishing

This type of scam attempts to “fish” for sensitive personal or financial information (such as passwords or credit card numbers). Many emails used in recent phishing schemes look legitimate; they may use the name of a trusted company or individual as the sender name, but the email address is slightly different than the company’s or individual’s verified address.

These types of email messages may also ask you to verify information or click on a link, which could install harmful software on your computer.

Wire Transfer Fraud

A specific type of phishing email that has been targeting home buyers recently is one that asks buyers to wire their closing costs to another account. The email typically crafts some urgent scenario, such as a last-minute change in wiring instructions, and urges the recipient to act quickly by wiring the money to the new account. This phishing email has led to home buyers losing thousands of dollars — in some cases, the entire purchase price of the house — to scammers. Unfortunately, the money can’t be returned once it’s gone.

Wire transfer fraud scams are especially dangerous because the emails appear to be sent directly from the real estate agent, the electronic signature company, or the title company. There may not be any misspellings or grammatical errors in the email message (which were surefire signs of a scam in the past), the message itself may be friendly and conversational, and any information related to the real estate transaction may be detailed and accurate.

How You Can Avoid Falling Victim to Email Scams

Now that you know what types of scams have plagued the real estate industry, here are a few tips you can follow to prevent yourself from falling victim to a devastating email scam.

Verify that you received an email from the right person. Ensure that any emails you receive are legitimate by contacting the sender directly. Make sure you look up their phone number instead of clicking on the number provided in the email signature, which may be the scammer’s phone number.

Verify that the email address is legitimate. When you receive emails that appear to be from your real estate agent, title company, or attorney, check to make sure the sender’s email address does not contain misspellings, extra characters, or anything unusual.

Never share sensitive information via email. Your real estate agent will never ask you to send sensitive personal or financial information in an email.

Don’t touch an email that looks suspicious. Never click on any links or download any attachments from an unverified email, even if it looks legitimate. These links or attachments could be malware that will harm your computer.

Always use strong passwords. Use passwords that contain letters, numbers, and special characters, and change them periodically.

Report suspicious emails. If you receive an email that seems suspicious or is in fact a scam, report it to the Federal Trade Commission immediately.

Contact Us to Learn More

We’re aware of scams like these, so it’s our goal to keep you informed whether you’re buying or selling a home. Give us a call and we’ll provide you with any additional resources you need!

]]>http://blog.providencegrouprealty.com/2017/09/15/how-buyers-and-sellers-have-lost-thousands-of-dollars-to-email-scams/feed/01315Top 5 Reasons Why Millennials Choose to Buy [INFOGRAPHIC]http://blog.providencegrouprealty.com/2017/09/15/top-5-reasons-why-millennials-choose-to-buy-infographic/
http://blog.providencegrouprealty.com/2017/09/15/top-5-reasons-why-millennials-choose-to-buy-infographic/#respondFri, 15 Sep 2017 10:00:00 +0000http://blog.providencegrouprealty.com/2017/09/15/top-5-reasons-why-millennials-choose-to-buy-infographic/Some Highlights: “The majority of millennials said they consider owning a home more sensible than renting for both financial and lifestyle reasons — including control of living space, flexibility in future decisions, privacy and security, and living in a nice home.” The top reason millennials choose to buy is to have control over their living […]]]>

Some Highlights:

“The majority of millennials said they consider owning a home more sensible than renting for both financial and lifestyle reasons — including control of living space, flexibility in future decisions, privacy and security, and living in a nice home.”

The top reason millennials choose to buy is to have control over their living space, at 93%.

Many millennials who rent a home or apartment prior to buying their own homes dream of the day that they will be able to paint the walls whatever color they’d like, or renovate an outdated part of their living space.

]]>http://blog.providencegrouprealty.com/2017/09/15/top-5-reasons-why-millennials-choose-to-buy-infographic/feed/01314Report: Homeownership Is a Precondition of the American Dreamhttp://blog.providencegrouprealty.com/2017/09/14/report-homeownership-is-a-precondition-of-the-american-dream/
http://blog.providencegrouprealty.com/2017/09/14/report-homeownership-is-a-precondition-of-the-american-dream/#respondThu, 14 Sep 2017 10:00:00 +0000http://blog.providencegrouprealty.com/2017/09/14/report-homeownership-is-a-precondition-of-the-american-dream/Hearth just released their 2017 State of the American Dream report which showed that Americans still see homeownership as an integral piece of the American Dream. The report confirmed that “all generations–including millennials–agree homeownership is very important to achieving the American Dream.” Americans ranked “owning a home I love” higher than any other options (including […]]]>

Hearth just released their 2017 State of the American Dream report which showed that Americans still see homeownership as an integral piece of the American Dream. The report confirmed that “all generations–including millennials–agree homeownership is very important to achieving the American Dream.”

Americans ranked “owning a home I love” higher than any other options (including “starting a family” and “finding a fulfilling career”) as an important part of the American Dream.

Despite some claims that homeownership’s importance to the American Dream is in decline, the report found that the dream of homeownership remains strong.

Of Americans who said they think achieving the American Dream is important, 70% think homeownership is important to the dream, and 41% think homeownership is very important to the dream.

What about Millennials?

Hearth addresses the desires of millennials by explaining:

“Contrary to popular opinion, millennials who want to achieve the American Dream are 5% more likely than Baby Boomers to think homeownership is important. And two-thirds of millennial renters view homeownership as important to the American Dream.

Although millennials are often portrayed as fickle and transient, they actually seek the stability of homeownership even more than their parents.”

Other Key Findings from the Report:

Homeowners are 126% more likely than non-homeowners to view homeownership as a way to build wealth. Nevertheless, homeowners still overwhelmingly associated homeownership with a family living space.

Homeowners are 24% more likely than non-homeowners to see homeownership as an achievement that reflects hard work.

Millennials are 77% more likely than baby boomers to see a home primarily as a way to build wealth.

Baby boomers are 98% more likely than millennials to see a home as a way to pass wealth down to children or family.

Millennials are 29% more likely than baby boomers to see a home as an achievement that reflects hard work–an outcome we expected given that many millennials are still working hard to afford their first homes.

Bottom Line

The report concluded:

“This survey revealed a powerful finding: Across demographic groups, homeownership remains a precondition of the American Dream.”